Adam equity theory of Motivation, Slides of Psychology

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EQUITY THEORY OF

MOTIVATION

♦ > ♦ > ♦ > ♦ > INTRODUCTION

Equity theory was first developed in 1963 by Jane

Stacy Adams.

It says that individuals compare their job inputs

and outcomes with those of others and then

respond to eliminate any inequalities.

The higher an individual's perception of equity, the

more motivated they will be.

If someone perceives an unfair environment, they

will be demotivated.

OUTCOMES

• Job security
• Salary
• Employee benefit
• Expenses
• Recognition
• Reputation
• Responsibility
• Sense of achievement
• Praise

Adam's EQUITY THEORY diagram Balance ’calibrated' and measured against comparable references in the market-place. People become demotivated and reduce input and/or seek change or improvement whenever they feei their inputs are not being fairly rewarded by outputs. Fairness is based on perceived market norms. What I put into my job: time, effort, ability, loyalty, tolerance, flexibility, integrity, commitment, reliability, heart and soul, personal sacrifice, etc What I get from my job: pay, bonus, perks, benefits, security, recognition, interest, development, reputation, praise, responsibility, enjoyment, etc outputs

Referent comparisons are categorised under:

■ SELF INSIDE :-

An employee's experiences in a different position inside

the employee's current organisation.

■ SELF OUTSIDE :-

An employee's experiences in a situation or

position outside the employee's current organisation.

■ OTHER INSIDE :-

Another individual or group of individuals

inside the employee's organisation.

■ OTHER OUTSIDE :-

Another individual or group of individuals

outside the employee's organisation.

The structure of equity in the workplace is based on the ratio of inputs to outcomes. RATIO COMPARISONS PERCEPTION (^) SITUATION OF AN EMPLOYEE Individual’s outcome < Other’s outcome Individual’s input Other’s input Inequity Anger Individual’s outcome = Other’s outcome Individual’s input Other’s input Equity^ Satisfied Individual’s outcome > Other’s outcome Individual’s input Other’s input Inequity Pride, Over confidence and Guilt

The theory establishes the following propositions relating to inequitable pay:

• Given payment by time, over rewarded employees will

produce more than will equitably paid employees.

• Given payment by quantity of production, over rewarded

employees will produce fewer, but higher-quality units than

will equitably paid employees.

• Given payment by time, under rewarded employees will

produce less or poorer quality of output.

• Given payment by quantity of production, under rewarded

employees will produce a large number of low quality units

in comparison with equitably paid employees.

EQUALITY VS EQUITY

Assumptions:

Equity norm

Employees expect a fair return for what they contribute to their jobs.

Social comparison

Employees determine what their equitable return should be after comparing their inputs and outcomes with those of their coworkers.

Cognitive distortion

Employees who perceive themselves as being in an inequitable situation will seek to reduce the inequity either by distorting inputs and/or outcomes in their own minds, by directly altering inputs and/or outputs, or by leaving the organization.

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